World demand to rise 7% annually through 2018

Worldwide demand for lighting fixtures is projected to increase at a 7% annual
rate through 2018 to $174.5 billion, improving upon growth that was recorded
during the 2008-2013 period. Advances will be bolstered by industrialization
efforts in developing nations. Specifically, locations that maintain
significant and fast growing construction and motor vehicle production
markets, such as India and China, will post the fastest gains in lighting
fixture demand. In addition, the rebounding economies in much of the developed
world will facilitate rising lighting fixture sales. Furthermore, the
continued adoption of higher value lighting fixtures that are optimized for
use with more efficient light sources, such as light-emitting diodes (LEDs),
will fuel demand.

China to account for largest share of new demand

In 2013, China comprised 24 percent of worldwide demand for lighting fixtures.
China is expected to account for the largest share of additional global demand
through 2018 with 37 percent of sales gains. The country will continue to
experience robust growth because of its rapidly growing construction spending,
including a number of large-scale lighting fixture retrofit projects, and its
status as the world's largest motor vehicle manufacturer. However, India will
increase at the fastest rate, driven by the country's continuing expansion of
its electric grid, modernization of its building stock, and growth of the
nation's vehicle production industry.

Key US market to see above-average growth

The US, which was the second largest national market in 2013 with 18 percent
of global sales, is projected to achieve above-average gains, even as the rest
of the developed world posts more moderate growth rates. Advances in the US
lighting fixture market are largely the result of an ongoing economic rebound.
However, sales increases in much of Western Europe, and Japan and Australia
will be slower, hampered by a long-running shift in vehicle production
capacity away from these areas and a less robust recovery from a weakened
economic climate. Still, lighting fixture sales in these areaswill benefit
from a pickup in consumer spending levels and construction activity, even
given their much more mature lighting fixture markets.

Nonportable lighting fixtures to offer best opportunities

Nonportable lighting fixtures will continue to account for the bulk of demand,
and experience the strongest growth in sales through 2018. Indoor and outdoor
nonportable lighting fixtures will record comparable rates of growth through
2018, benefiting from the strong gains in construction spending that is
expected in much of the world. Advances for portable lighting fixtures will be
more modest, partly because many of the newer light technologies fit most
legacy portable fixtures so an upgrade is not necessary to get greater energy
efficiency.

Construction to be fastest growing market

The construction market for lighting fixtures is expected to post the fastest
growth in demand through 2018. This market -- which includes hardwired
fixtures as well as the separately sold parts and accessories -- is also the
biggest outlet for lighting fixtures. Specifically, residential construction
applications will post the fastest gains, with sales in this market segment
benefiting from the expected gains in household construction.

Study coverage

This upcoming Freedonia industry study, World Lighting Fixtures, presents
historical demand data for 2003, 2008 and 2013, and forecasts for 2018 and
2023 by product, market, world region, and for 24 countries. The study also
considers market environment factors, evaluates company market share and
profiles 40 global industry players.